There is an intriguing proposal out there that promises to solve a lot of our economic problems. It’s called FairTax. FairTax replaces all taxes, Social Security, income, estate, etc., with one big 23% sales tax.
According tax advocates, this would get rid of tax loopholes, complicated forms, the IRS, and many other things that annoy us. FairTax would let the economy run fairly free and help families in the long run.
One of the benefits I see is that it penalizes something that Americans are doing too much of: buying. Americans are going into deep debt from just normal purchases. It also loosens the penalty on things people should do: save, invest, make money, marry, etc. If you want to encourage something, you make it less expensive; if you want to discourage something, you charge a lot for it. That’s what FairTax does.
It’s an extremely fascinating proposition, but I doubt it will muster enough of a following to make an impact in Congress any time soon. John Linder is the main advocate right now in Congress, and he’s pushing for the FairTax intensely.
More information is at www.fairtax.org and World Magazine.
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